Question
Hello, I need some help with this question. Using the appropriate table from the Chapter 12 Appendices, record the present-value factor at 10% for each
Hello, I need some help with this question.
Using the appropriate table from the Chapter 12 Appendices, record the present-value factor at 10% for each year and compute the present-value cost of owning and the present value of leasing. Which alternative is more desirable at this interest rate? Do you think your answer would change if the interest rate was 6% instead of 10%?
Cost of Owning: Anywhere ClinicComparative Present Value | ||||||
For-Profit Cost of Owning: | Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
Net Cash Flow | (48,750) | 2,500 | 2,500 | 2,500 | 2,500 | 5,000 |
Present-value factor |
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Present-value answers = |
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Present-value cost of owning = |
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Cost of Leasing: Anywhere ClinicComparative Present Value
Line# | For-Profit Cost of Leasing: | Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
19 | Net Cash Flow | (8,250) | (8,250) | (8,250) | (8,250) | (8,250) | - |
20 | Present-value factor |
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21 | Present-value answers = |
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22 | Present-value cost of leasing = |
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